This article will explain how art dealers make money. We will not discuss some of the really difficult questions. We don't care about the economics of contemporary art or the economic consequences of the current art market.

If you don't have time to read it, I will say this: when and if you are at a gallery with an art dealer, don't ask him or her the most direct question you can think of, or even what the very last question is, because they know nothing about it.

Don't tell them you want an easel with a painting on it, or that you're an art collector from Maryland. There is no truth to those accusations.

A real collector will accept this information and not think you're trying to get something for free. That will get you a much more serious answer.

Even if you buy a work by a known artist, you don't get to keep it. You don't get to do anything with it except add it to your collection, and you certainly can't give it away.

All you can do is keep paying to display it, hopefully paying by commission, though that is becoming increasingly rare. The art world is complicated because art collectors are at a competitive disadvantage.

They are people who have to sell artwork fast to keep up with the Joneses and they are constantly trying to find the right combination of price, location, and promotion to get more sales.

How the price of an art piece is determined:

Before the 1920s, an art gallery owner, whose career was highly dependent on selling art, might personally inspect every artwork before it was sold. It was unusual, but he did it.

The modern art gallery owner goes to the artist's studio or the art fair to view the work and assess its value, and he then gives his opinion on the art's desirability. It's a subjective assessment, not one based on a mathematical formula.

Today, the art dealer might ask the artist what his price is, but what the artist thinks he is worth will be far more closely guarded, to the point where it is often perceived as a betrayal of trust.

The art dealer will usually tell you that the artist is well paid but he will never say that you are paying the artist what he's worth. It has nothing to do with money, but many buyers feel the need to conceal that from themselves.

Some pieces will not sell. At the moment, Pablo Picasso's Guernica will not sell for anything more than $100 million, and yet no one can tell you why.

The argument that it is a cheap paint-by-number is an insult to the legacy of the Spanish artist. Or how about Jasper Johns' Silver Car Crash from 1956? No one can tell you why it's worth $38 million.

These are tough questions to answer. The gallery owner will suggest you visit other galleries to get a sense of the prices of the art you like, but that's not helpful. You want a simple answer that you can feel and understand.

What kind of assumptions is the gallery owner making to justify the price he is asking for a work? What kind of mark-ups will he take? Is the artist's ability to sell art on the open market that strong? Are his or her commissions that high?

It all makes sense to the art dealer, but it's not always what you want to hear. The art world is very expensive and it can be a very emotional experience to buy and sell art, and at this moment, most buyers and sellers are looking for a little bit of understanding.

A great gallery is an invaluable asset in an art collector's collection, but they are not one-stop shops. Take the time to learn what else the gallery has to offer and buy from that gallery.

The good and the bad of being an art collector:

Whether it's a work of art or an artist, people often see the work, feel the emotional attachment, and then proceed to make all kinds of assumptions, based on a series of personal preferences.

When buying a piece of art, most collectors are also buying an intellectual asset. Yes, the artwork is also physical, but the artist is an intellectual entity, even if he or she may be an "old guy" who wears glasses and is a bit scruffy looking.

While buying art, you must ask yourself:

• What is the work telling me about the artist?
• Is the artist unique?
• What other artists do I know who are comparable to the artist, and what does that tell me about the artist?
• What does the artist's career tell me about the artist's creativity?
• What do you think this artist's "star" status is?
• What do you think the value of this work is worth?
• How is the work distinct from others of its genre or artist?
• Why would this work of art appeal to you?

The rules to buying art are pretty simple. The artist should be a great communicator. The artwork should tell a story and illuminate an important moment in art history. At the same time, the artist should also be able to deliver a great quality of work.

Art must also be appropriate for the time and environment in which it will be displayed, and yet stand on its own as an individual piece of art, as a work of art in its own right.

The only way to do this is to ask the questions that come to mind and then allow those questions to guide your purchasing decisions.

The magic comes when you acquire art that resonates with you.